The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB46,1 1Section 1. 238.142 of the statutes is created to read:
AB46,2,3 2238.142 Grants to recipients of federal grants for research and
3innovation.
(1) Definitions. In this section:
AB46,2,64 (a) “Phase I federal grant" means a grant awarded by the federal government
5under Phase I of the federal Small Business Innovation Research Program or Phase
6I of the federal Small Business Technology Transfer Program.
AB46,2,87 (b) “Phase I matching grant" means a grant awarded by the corporation under
8sub. (3).
AB46,2,119 (c) “Phase II federal grant" means a grant awarded by the federal government
10under Phase II of the federal Small Business Innovation Research Program or Phase
11II of the federal Small Business Technology Transfer Program.
AB46,2,1312 (d) “Phase II matching grant" means a grant awarded by the corporation under
13sub. (4).
AB46,3,3
1(2) Grant program implementation. The corporation shall develop and
2implement an economic development program to award Phase I and Phase II
3matching grants under this section.
AB46,3,5 4(3) Phase I matching grants. (a) A Phase I federal grant recipient may apply
5for a Phase I matching grant on a form provided by the corporation.
AB46,3,86 (b) Subject to par. (c) and the limitations under sub. (5), the corporation may
7award a Phase I matching grant to an applicant under par. (a) if the applicant meets
8all of the following conditions:
AB46,3,129 1. The applicant submits to the corporation a copy of the applicant's executed
10Phase I federal grant agreement with the federal government or evidence
11satisfactory to the corporation that the applicant has received at least one payment
12of Phase I federal grant moneys.
AB46,3,1713 2. The applicant's business is located in this state and will not relocate outside
14of this state during the 3 years after it receives a Phase I matching grant. For the
15purposes of this subdivision, a business relocates outside of this state when the
16business locates more than 51 percent of its employees, its total payroll, or the
17activities of its headquarters, as determined by the corporation, outside of this state.
AB46,3,2118 3. The applicant submits evidence satisfactory to the corporation that the
19research to be conducted in connection with the Phase I federal grant will benefit the
20economy of this state and that at least 51 percent of that research will be conducted
21in this state.
AB46,3,2222 4. The applicant intends to apply for a Phase II federal grant.
AB46,3,2523 5. The applicant submitted its application under par. (a) within 180 days after
24the applicant first received any moneys from the federal government under the
25applicant's Phase I federal grant.
AB46,4,2
16. The applicant satisfies any other requirements established by the
2corporation.
AB46,4,73 (c) Before the corporation awards a Phase I matching grant, the corporation
4shall contract with the Phase I federal grant recipient. The corporation shall
5determine the contract's terms, including the amount of the Phase I matching grant,
6after negotiation with the Phase I federal grant recipient. The contract shall include
7all of the following provisions:
AB46,4,138 1. That, at a time determined by the corporation and specified in the contract,
9the Phase I federal grant recipient shall file with the corporation a report that shows
10the Phase I federal grant recipient's expenditures of the Phase I federal grant and
11the Phase I matching grant; and that, if the Phase I federal grant recipient fails to
12submit a report under this subdivision that is acceptable to the corporation, the
13corporation may order repayment of all or a portion of the Phase I matching grant.
AB46,4,1514 2. That the Phase I federal grant recipient may assign the contract to another
15person only upon the prior written consent of the corporation.
AB46,4,1816 3. That, in addition to any other purposes for which the Phase I federal grant
17may be expended, the Phase I matching grant may be used for patenting, market
18research, and marketing.
AB46,4,20 19(4) Phase II matching grants. (a) A Phase I matching grant recipient may
20apply for a Phase II matching grant on a form provided by the corporation.
AB46,4,2321 (b) Subject to par. (c) and the limitations under sub. (5), the corporation may
22award a Phase II matching grant to an applicant under par. (a) if the applicant meets
23all of the following conditions:
AB46,5,224 1. The applicant submits evidence satisfactory to the corporation that the
25federal government approved the applicant's final report for its Phase I federal grant,

1the applicant has satisfied any other applicable requirements for its Phase I federal
2grant, and the applicant has been awarded a Phase II federal grant.
AB46,5,43 2. The applicant submitted its application under par. (a) within 90 days after
4the applicant completed its research under the applicant's Phase I federal grant.
AB46,5,65 3. The applicant satisfies any other requirements established by the
6corporation.
AB46,5,117 (c) Before the corporation awards a Phase II matching grant, the corporation
8shall contract with the Phase II federal grant recipient. The corporation shall
9determine the contract's terms, including the amount of the Phase II matching grant,
10after negotiation with the Phase II federal grant recipient. The contract shall include
11all of the following provisions:
AB46,5,1712 1. That, at a time determined by the corporation and specified in the contract,
13the Phase II federal grant recipient shall file with the corporation a report that shows
14the Phase II federal grant recipient's expenditures of the Phase II federal grant and
15the Phase II matching grant; and that, if the Phase II federal grant recipient fails to
16submit a report under this subdivision that is acceptable to the corporation, the
17corporation may order repayment of all or a portion of the Phase II matching grant.
AB46,5,1918 2. That the Phase II federal grant recipient may assign the contract to another
19person only upon the prior written consent of the corporation.
AB46,5,2220 3. That, in addition to any other purposes for which the Phase II federal grant
21may be expended, the Phase II matching grant may be expended for patenting,
22market research, and marketing.
AB46,5,25 23(5) Limitations. (a) The corporation may not award a Phase I or Phase II
24matching grant that exceeds $50,000 or the amount of the Phase I or Phase II federal
25grant, whichever is less.
AB46,6,2
1(b) The corporation may not award grants under this section totaling more than
2$300,000 per state fiscal year.
AB46,6,33 (End)
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